Birmingham Midshires Buy To Let Mortgages
Birmingham Midshires Buy to Let Mortgage Service
Why choose us?
Fair Mortgages can provide you with a first class service if you are looking for buy to let mortgage advice.
Special features of what we offer include:
- Whole of market broker - we deal with most UK buy to let lenders including Birmingham Midshires
- Access to leading buy to let market rates
- Access to exclusive buy to let mortgage deals not available on the high street
- Expert help whether you are a first time investor or full time landlord
- We have lenders who will take into account previous defaults and missed payments
- Complex buy to let or have a portfolio of 5+ properties? - speak to us
To investigate your buy to let mortgage options, call our specialist team or fill in our call back form.
Birmingham Midshires Buy To Let
Birmingham Midshires buy to let mortgage products are not directly available to consumers; instead, their buy to let plans are only available through intermediaries via their dedicated BM Solutions brand, which offers a variety of buy to let mortgage products.
BM Solutions have a range of options whether you are looking to purchase a new buy to let or to remortgage.
To be eligible for BM Solutions buy to let mortgage:
- All applicants need to be at least 25 years old
- The eldest applicant cannot exceed 75 at the end of the mortgage term, minimum terms is 5 years.
- At least one applicant must own a property in the United Kingdom
- Other applicants must either currently own a property in the UK or have previously owned one.
- Maximum lending on each individual property is up to £1 million.
- Minimum acceptable property value/purchase value is £40,000
Getting a buy to let mortgage?
If you have not taken out a buy to let mortgage before, there a few differences from a homebuyer mortgage you should first understand
As buy to let mortgages are perceived by lenders as being of higher risk than homebuyer mortgages, they generally require larger deposits.
While it is possible to secure a homebuyer mortgage with a relatively small deposit, buy to let lenders tend to require a deposit of at least 25%, although there are some products available with larger loan to value ratios. As with most forms of finance, the larger the deposit you can afford to put down, the cheaper your repayments will be.
While homebuyer mortgage affordability is usually calculated by using a multiple of the applicant’s annual income, this is not commonly the case with buy to let products. Affordability with buy to let mortgages is often based upon a rental valuation of the proposed property, normally requiring the estimated monthly rental income to be at least 145% of what your monthly mortgage payments would be.
Not only is a rental coverage ratio of at least 145% needed, but Birmingham Midshires apply an income stress test and require applicants to be able to cover mortgage payments in the event that the interest rates increase to 5.5%.
For landlords with multiple properties, it is important to note that Birmingham Midshires may require an in-depth review of the applicant's property portfolio. This is to ensure that all the applicant's properties are profitable, as applicants can no longer spread equity across their entire portfolio. This means that if an applicant has one or more properties that are not profitable, then Birmingham Midshires will not approve the buy to let mortgage.
As with a standard mortgage it is possible to get buy to let finance both on a repayment and interest only basis:
Repayment - With a repayment buy to let mortgage, your monthly payment will pay off a portion of the original sum you borrowed. Therefore, at the end of your mortgage term you will have completely paid off the original loan.
Interest-Only – With this option, as the name suggests, your monthly payment pays only the interest that has accumulated on your loan. This means that the end of the mortgage term you will need to pay off the original sum you borrowed in full, as such these kinds of plans tend to have stricter lending criteria.
Independent Mortgage Adviser
Whether you are looking for your first buy to let property, remortgaging or expanding your investment property portfolio you may benefit from the services of an independent mortgage adviser. Not only can a good adviser offer you advice throughout the mortgage process, but they can search the whole of the market on your behalf to find the top products from different providers, including those which can only be accessed via an intermediary.
To find out if Fair Mortgages could help you, you can fill in our online contact form to request a call back from one of our advisers who can provide you with a free initial consultation, or call us direct.